Buyer's Premium

[bcornell]

[REMOVED] This forum is done.

[Cat]

No Bill, it's not your imagination. They have been moving up in a stealthful fashion.

I'll buy into this generalization, as well.

I'm going to generalize and say that rates above 15% are too high for both consignors and buyers.

[pro9]

Agreed on both points.
At least with Heritage you can pay with a credit card and get something back.

[ethicsprof]

i agree with the aforementioned and have to add that it's mighty nice to see
Elliot on the board again!!
all the best
barry

[cbcbcb]

It seems that the buyer's premium would be almost entirely passed onto the consignor. When I bid, and I hope when most others bid, I price in the buyer's premium into the value of the item. If an item is worth $200, I will only bid $167 if there is a 20% BP. Thus, the consignor takes the entire hit. It would be interesting to do a study on this.

[wonkaticket]

No doubt on the rise...could be from 0% deals on the sellers side from the auction houses to draw stuff out?

But agree if it gets any higher I will get better rates at the local pool hall from the guy in the back who loans money.

[teetwoohsix]

Originally Posted by cbcbcb

It seems that the buyer's premium would be almost entirely passed onto the consignor. When I bid, and I hope when most others bid, I price in the buyer's premium into the value of the item. If an item is worth $200, I will only bid $167 if there is a 20% BP. Thus, the consignor takes the entire hit. It would be interesting to do a study on this.

I wonder how it would work out if the BP was split down the middle between the consignor and the buyer.....say if it were 15%, consignor 7.5% and buyer 7.5%..........maybe the buyer would bid higher, and overall the seller may make more?

I know at first this could possibly steer a consignor the other direction, but the buyer's would love such a low BP, more money to spend -thus, consignor may make more $$ in the end.

Clayton

[DanP]

Originally Posted by cbcbcb

It seems that the buyer's premium would be almost entirely passed onto the consignor. When I bid, and I hope when most others bid, I price in the buyer's premium into the value of the item. If an item is worth $200, I will only bid $167 if there is a 20% BP. Thus, the consignor takes the entire hit. It would be interesting to do a study on this.

I agree, and I think most buyers do also. If that's true, you're correct the co-signor takes the entire hit. However, it seems to me like the sellers get a premium on their products at these auctions (rather than eBay). So if the seller gets 20%+/- more than they would selling on eBay they really aren't "taking any hit". Dan